May 1, 2008
Detrex Corporation Reports Profit for the First Quarter of 2008
Southfield, Michigan – May 1, 2008 - Detrex Corporation (DTRX.PK), a diversified manufacturer of PVC and CPVC pipe, duct and shapes and specialty chemicals including lubricant additives and high purity hydrochloric acid, today announced 2008 first quarter pre-tax income of $914,416 compared to pre-tax income of $982,716 in the same period last year. Net income for the first quarter 2008 was $502,927, or $0.31 per fully diluted share, compared to net income of $540,494, or $0.33 per fully diluted share, in the first quarter of last year.
First quarter 2008 revenues were $24.6M, which represents a slight increase compared to prior year first quarter revenues of $24.3M. This increase was the result of a 17% increase in sales at the Elco Corporation, partially offset by a 3.5% decrease in sales at Harvel Plastics, Inc. The increase in sales at Elco was the result of improved order patterns with existing customers combined with several new accounts. At Harvel, the decline in sales resulted from the end of a manufacturing arrangement with a large customer. The combined gross margins were approximately the same as in the first quarter 2007 with an increase in Elco’s margin, partially offset by a reduction at Harvel. Year-over-year pre-tax earnings were 7% lower, largely as a result of increased sales commissions and accruals for performance based incentives.
Commenting on the Company’s results, President and CEO Tom Mark said, “Our first quarter performance was solid given the economic environment in which we are operating. The outlook for 2008 is for a challenging year, however, the fundamentals of our two businesses are sound and we believe that we can sustain the current performance. We are pleased to announce that at the end of the first quarter, we closed on a new credit facility which provides us with greater flexibility for financing operations and capital expenditures, including expenditures for legacy liabilities.”
Statements included in this press release that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “1995 Act”). The words “believe,” “expect,” “anticipate,” “estimate,” “guidance,” “target” and similar expressions identify forward-looking statements. The Company cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in the forward-looking statements. Certain risks and uncertainties are identified from time to time in the Company’s reports. Some factors that could cause results to differ materially from those projected in the forward-looking statements include: market conditions, environmental remediation costs, pension expense and funding requirements, liquidation value of assets, and marketability of real estate and the market value and future liquidity of Detrex stock. The Company claims the protection of the safe harbor for forward-looking statements contained in the 1995 Act.